In Brief
Bank of India held a second charge on properties of defaulting borrower Agrawal Indotex Ltd. When the first charge holder sold the PV Division and satisfied its claim from proceeds, the Bank's second charge converted to first charge on that asset. The borrower filed successive writ petitions challenging the Bank's enforcement action. The Supreme Court held that the charge follows the property to its new owner and the Bank's claim remains intact. The Court allowed the Bank's appeals and dismissed the writ petitions, vacating interim protections granted to the borrower, as the borrower rejected the offered One Time Settlement Scheme.
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